Johnson came to Apple from Target eleven years ago, overseeing the launch and strong growth of Apple's retail store segment. With other computer companies such as Gateway struggling with their own retail efforts at the time, Apple faced a significant amount of skepticism about whether it could make a viable stand in direct-sales retail.

Quote:

Problem is, the numbers don't add up. Given the decision to set up shop in high-rent districts in Manhattan, Boston, Chicago, and Jobs's hometown of Palo Alto, Calif., the leases for Apple's stores could cost $1.2 million a year each, says David A. Goldstein, president of researcher Channel Marketing Corp. Since PC retailing gross margins are normally 10% or less, Apple would have to sell $12 million a year per store to pay for the space. Gateway does about $8 million annually at each of its Country Stores. Then there's the cost of construction, hiring experienced staff. "I give them two years before they're turning out the lights on a very painful and expensive mistake," says Goldstein.

Apple has of course seen a tremendous amount of success in retail, leading all U.S. retail chains in sales per square foot while also serving to enhance brand awareness and offer direct support services to customers.

Apple has yet to announce Johnson's successor, with the company reportedly having been conducting a worldwide search as it seeks to increase its retail presence in international markets. The company has announced that it intends to open forty new retail stores during fiscal 2012, with 75% of those locations coming outside of the United States. Apple is also looking to expand or replace a number of its existing stores that are no longer able to handle current customer traffic levels.

Current Apple vice president for retail Jerry McDougal served under Johnson for over ten years, and has been viewed by some as a solid option to take the senior executive position with Johnson's departure. But it certainly appears that Apple is being diligent in its efforts to identify the best possible candidate to lead its retail operations, looking both inside and outside the company.

From VP of Retail to CEO of JCP it's a big move forward that is good for his career. And JCP needs all the help they can get.

A successor will be named sooner or later, as negotiations may be currently going on.

I do feel that too many changes are going on at Apple after Steve's departure. Maybe a coincidence, maybe not.
I just hope everything quickly adjusts for good, and that Apple follows the guidelines set by Steve during his last days, otherwise he may just have work until the end for nothing.

Johnson is heading into a similar challenge that he took on at Apple. Prior to his development of the retail stores, Apple went to the market through a strange array of stores which ranged from dedicated retailers to almost hobby shop environments. He created the "Apple cathedral" effect that I experience when walking into one of the retail stores. Now he faces the challenge of turning around another iconic brand which has languished and is all but forgotten by younger generations. I wish him the best of luck in the new venture and look forward to seeing what ideas he has for the company. I remember when everyone said that Apple stores were a dumb idea. Hehehe.

Johnson is heading into a similar challenge that he took on at Apple. Prior to his development of the retail stores, Apple went to the market through a strange array of stores which ranged from dedicated retailers to almost hobby shop environments. He created the "Apple cathedral" effect that I experience when walking into one of the retail stores. Now he faces the challenge of turning around another iconic brand which has languished and is all but forgotten by younger generations. I wish him the best of luck in the new venture and look forward to seeing what ideas he has for the company. I remember when everyone said that Apple stores were a dumb idea. Hehehe.

Uh, everyone ? I don't think so. I was working in an independent Apple retail store back in the A2, Mac inception days (second job). I was more than happy to see it come back, even better that its company owned.

Apple is also looking to expand or replace a number of its existing stores that are no longer able to handle current customer traffic levels.

I hope one of these is the Oxmoor Center store in Louisville. That place's traffic has seriously outgrown its space; it could use an upgrade ASAP. I used to love going in there. Now it's an ordeal just to get in, get the attention of a sales associate, get your stuff and get out, what with the throngs of Genius Bar and Personal Setup customers.

Of course, other retailers would love to have this problem, considering the current general economic state.